Cryptoupdated 38m ago2 min read
Brooklyn DA Eric Gonzalez And FBI Shut 241 Crypto Scam Websites, Seize 112 Servers
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Brooklyn DA and FBI shut down 241 crypto scam websites. 112 servers seized from the Eastern European crypto scam network.
7 outlets told this the same way.
241 Sites, 112 Servers
Brooklyn prosecutors and the FBI disrupted an Eastern European cryptocurrency scam network accused of stealing tens of millions of dollars from Americans, primarily Russian-speakers, by shutting down 241 websites and seizing 112 servers. Brooklyn District Attorney Eric Gonzalez said, "These criminals stole many millions of dollars from Russian-speaking victims through an elaborate investment scheme, then tried to exploit them again with false promises to recover their money," describing the scheme as an attempt to target victims again.
Assistant District Attorney Alona Katz said, "We disabled the back end of the operation," as the server seizures disrupted the scammers’ ability to create new websites and contact victims. The operation resulted in no arrests, and it was carried out last week and announced on Wednesday, according to the Brooklyn District Attorney’s Office.
How the Scheme Worked
Prosecutors said the network targeted Russian-speaking Americans through fake investment offers and recovery promises, and they described the fraud as extending beyond initial investment losses. Eric Gonzalez said the operators later approached people with false offers to retrieve their stolen cryptocurrency, and he said, "These criminals stole many millions of dollars from Russian-speaking victims through an elaborate investment scheme, then tried to exploit them again with false promises to recover their money," in describing that second phase.
Investigators said victims commonly entered the scheme through Russian-language Facebook advertisements, and prosecutors said people responding to the ads received calls from purported investment advisers who spoke Russian and helped them open accounts on cryptocurrency websites. Prosecutors said that when victims tried to withdraw after weeks or months, they were locked out or told to pay additional fees and taxes, and prosecutors said data recovered during the investigation showed scammers contacted victims again a few weeks after the initial deception.
Fraud Losses and Next Steps
The crackdown came as Americans reported $11.4 billion in crypto fraud losses in 2025, a 22% increase from the previous year, according to FBI figures cited by Bloomberg. Quartz said the operation stripped the scammers of access to victim records, the content driving their web domains, and the tools that ran their operation, after prosecutors and the FBI seized 112 servers from hosting providers in Eastern Europe and the United States.
The Brooklyn District Attorney’s Office said it had already seized or disrupted 400 domains associated with cryptocurrency investment fraud before the latest action, and prosecutors said replacement sites appeared quickly even after websites were taken offline. The district attorney’s office said it had seized about $300,000 in stolen funds so far and that investigators were working to recover more, while the Virtual Currency Unit continued to pursue the infrastructure behind the alleged fraud.